EIP-3074

What Is EIP-3074?

As of August 2024, EIP-3074 is not live on the Ethereum mainnet, but it’s expected to roll out with the Pectra upgrade by the end of 2024.

How Does EIP-3074 Work?

EIP-3074 works by introducing two main operations that change how transactions are handled on the Ethereum network: AUTH and AUTHCALL.

AUTH

AUTH sets an authorized sender for a transaction. Normally, when you send a transaction, you are both the person sending it and the person authorizing it. With AUTH, you can give someone permission to send the transaction on your behalf. 

AUTHCALL

Benefits of EIP-3074

1. Improved security: By separating transaction authorization from sending, EIP-3074 can help enhance security, reducing the risk of unauthorized transactions.
2. Greater flexibility: The EIP-3074 upgrade allows for transactions to be managed by different parties, which is super handy in scenarios where control needs to be shared.
3. Enhanced user experience: For end-users, EIP-3074 could simplify interactions with Ethereum. It could reduce the need for multiple signatures or approvals, making it easier and faster to use decentralized applications (DApps).
4. Support for complex transactions: EIP-3074 enables more complex transaction types and interactions between smart contracts, which is beneficial for the development of advanced decentralized finance (DeFi) protocols.

Where Could EIP-3074 Be Used?

1. Gasless Transactions: Imagine making transactions without worrying about ETH for gas fees. EIP-3074 could make that a reality, making Ethereum more accessible to newcomers.

2. Automated Payments: Set up recurring payments without needing to manually approve each one. EIP-3074 can automate this for you, saving time and effort.

3. DeFi Innovations: The flexibility and security this upgrade offers could fuel the next big thing in DeFi, enabling even more sophisticated financial products.

What About Security?

While EIP-3074 sounds great, it’s not without its risks. Giving someone else the power to act on your behalf requires a lot of trust. The Ethereum community is carefully considering how to mitigate these risks, with ideas like setting time limits and restricting what the authorized party can do.

EIP-3074 Related Proposals

EIP-3074 isn’t happening in isolation. It’s part of a larger effort to make Ethereum more efficient and user-friendly, working alongside other proposals like EIP-2930 (which deals with access lists) and EIP-1559 (which changes how fees work). Understanding EIP-3074 alongside these other updates provides a clearer picture of Ethereum's future direction.

Conclusion

EIP-3074 is designed to make Ethereum transactions more secure and user-friendly by introducing AUTH and AUTHCALL operations. These changes could significantly enhance how we interact with Ethereum, opening the doors for more complex and powerful applications in the DeFi space.